Rolls-Royce share price has held steady in the past few days, moving from a low of 1,020p on November 24 to the current 1,110p. It has jumped by over 100% from its lowest level in January and is a few points below the year-to-date high of 1,195p. So, is it still safe to buy the RR stock?

Rolls-Royce share price has lost momentum 

Rolls-Royce, the giant British engine manufacturer, has been one of the best-performing companies in the FTSE 100 Index this year, helped by the robust demand of its products across its verticals like civil aviation, defense, and energy.

The company has emerged from being one of the top laggards during the pandemic into the best performer, with its stock soaring from a low of 62.15p in 2022 to the current 1,112p, a 1,527% surge that pushed its market capitalization to over $126 billion. It has become one of the biggest British companies.

The company has emerged from being a “burning platform” as the CEO described it into being a highly profitable enterprise. In a recent trading statement, the management reaffirmed its forward guidance in terms of profitability and cash flow.

It now expects its full-year operating profit to be between £3.1 billion and £3.2 billion, with its free cash flow being between £3.0 billion and £3.1 billion.

This growth happened as the company received large orders from companies like IndiGo and Malaysia Airlines, and after the active flying hours crossed the pre-pandemic levels.

READ MORE: Rolls-Royce share price forecast for December: will it rebound?

Rolls-Royce Holdings’ business has also benefited from the ongoing boom in the defense industry. For example, the German parliament will soon vote on a 50 billion spending package that will mostly benefit European defense contractors.

Meanwhile, the RR stock price has done well because of its Small Modular Reactors (SMR) business. This business has already received a large order from the United Kingdom government. Talks are underway with other countries.

The company is also aiming to expand its SMR business to the United States, where the Trump administration recently announced a $800 million deal to invest in the sector. This program will benefit states like Tennessee and Michigan.

Rolls-Royce is one of the top players in the nuclear energy industry, an area it has been in since the 1950s. As such, the company may ultimately become a formidable competitor to companies like Oklo and NuScale, which have become multi-billion-dollar entities.

Despite its strong stock performance, the company is still not all that expensive as it has a trailing P/E ratio of 16.9, much lower than the S&P 500 Index average of 22.

Rolls-Royce stock price technical analysis

The daily timeframe chart shows that the RR stock price has remained in an upbeat tone in the past few days. It jumped from a low of 1,020p in November to the current 1,112p. 

The stock has moved above the 50-day and 100-day Exponential Moving Averages (EMA). This is a sign that bulls remain in control today. 

Rolls Royce share price has also formed a megaphone pattern and a bullish flag. A bullish flag is one of the most common continuation signs in technical analysis. 

Therefore, the most likely scenario is where the stock continues rising, with the next key target to watch being at 1,195p, its highest point this year.

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On Tuesday, US natural gas price extended losses from the previous session in reaction to forecasts of warmer weather in most parts of the country. Near-record output and ample inventories have further fueled the pullback, even as the bulls remain in control. Meanwhile, European prices are under selling pressure as investors weigh the prospects of a peace deal and subsequent easing of Russian sanctions.  

Europe Vs US natural gas prices: The paradox that lies within

This time of the year is usually marked by higher natural gas prices as investors price in increased warming demand during the Northern Hemisphere’s winter season. In fact, weather forecast is one of the bullish factors that bolstered US natural gas prices to a three-year high late last week. Besides, record LNG exports to Europe have fueled the months-long rally. 

While the short-term outlook remains positive, investors appear to weigh on whether the recent surge is the onset of a larger bullish trend or just a weather-driven spike that will soon fade. Indeed, this dilemma, coupled with the expected profit-booking, explains the pullback recorded since the start of the week.

According to the updated weather forecast, most parts of the US are expected to experience warmer temperatures in the near term. Atmospheric G2 has indicated that the eastern and southern US will be colder for the period between 18th and 22nd December, while other regions remain warmer.      

In its latest weekly report, EIA highlighted a draw of 12 Bcf compared to the expected 15 Bcf. Subsequently, the surplus surged from 160 Bcf to 191 Bcf. In addition to the ample amount of natural gas in storage, the near-record output is weighing on the prices.

Nonetheless, steady LNG exports continue to offer support to US natural gas prices while exerting selling pressure in the European market. In the current month, the natural gas flows to the eight major LNG export plants within the US are averaging at 18.9 Bcf/per day compared to the monthly record high hit in November at 18.2 Bcf/per day.

 Meanwhile, prospects of a peace deal that could see the return of Russian gas have pushed the benchmark for European prices, Dutch TTF, to the lowest level since April 2024. 

US natural gas price technical analysis

Late last week, the Henry Hub natural gas futures rallied to a three-year high at $5.50 per MMBtu as it marked seven consecutive weeks of gains. Since late September, it has recorded higher highs and higher lows as a positive demand outlook fuels the bullish sentiment. 

On Tuesday, it extended losses from the previous session, having pulled back below the psychologically crucial zone of $5.00. At the time of writing, the US natural gas was trading at $4.81. 

Despite the pullback, the bulls are still in control as the asset continues to trade above the 25 and 50-day EMAs. Indeed, the decline can be perceived as a cool-off rather than trend reversal.

In the immediate term, the range between Monday’s intraday high of $5.20 and the resistance-turn-support zone of $4.70 will be worth watching. Below that zone, the bulls will be keen on defending the crucial support at $4.50 as they gather enough momentum for a rebound. On the flip side, a bounceback past the range’s upper limit will give buyers a chance to retest the 3-year high at $5.50.

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GLD gold ETF ended last week in the red as Treasury yields edged higher ahead of the highly anticipated December Fed meeting. Despite the differing opinions among the US central bank officials, investors have become increasingly confident that the Fed will announce a quarter-basis-point interest rate cut during the meeting slated for 9th-10th December. 

Beyond that decision, financial markets will be keen on the FOMC statement for cues on what lies ahead. At the time of writing, the bullion was trading at $4,197 an ounce as the bulls lacked enough momentum to sustain its intraday move above the crucial zone of $4,250. 

Gold price analysis ahead of Fed meeting

A weaker US dollar, higher Treasury yields, and a wait-and-see approach have sustained gold price within a tight range in recent sessions as financial markets eye the last Fed meeting of the year. 

In past meetings, the central bank has maintained that its decisions will be informed by the released economic data. However, following the prolonged US government shutdown, the picture of the country’s economy is rather incomplete.

Even so, investors are increasingly confident that the Fed will lower interest rates by 25 basis points at the upcoming meeting. Beyond that decision, the focus will be on the central bank’s statement regarding the coming months. A hawkish tone would limit gold’s upside potential while strengthening the US dollar. 

At the same time, investors are already assessing the drivers in the coming year. In its forecast for 2026, the World Gold Council (WGC) notes that economic uncertainties and market volatility will continue to impact gold prices. The council paints three possible scenarios, which include an intense global downturn, slight slipping of the US labor market, or Trump’s unorthodox policies sparking stronger-than-expected growth. 

In the first two instances, a slowing US job market and easing consumer activity may push policymakers to lower interest rates further. Additionally, central bank buying, a softer US dollar, and a Fed Chair who favors lower interest rates, may bolster gold price to new highs. 

In contrast, signs that Trump’s policies are fueling higher-than-expected economic growth would strengthen the US dollar while lowering the precious metals’ safe-haven appeal.  

GLD ETF technical analysis

GLD gold ETF recorded a weekly loss after trading in the green over the past three weeks. It has ended in the red for four out of this week’s five trading sessions despite the steady support. 

A look at its daily chart shows the ETF still trading above the short-term 25-day EMA as the outlook remains positive. Notably, that level coincides with the middle Bollinger band. This further supports the thesis that the prices will likely continue to trade above that zone, at least in the immediate term. 

As such, the range between that support level at $380 and the resistance along the upper Bollinger band at $392 will be worth watching. With further rebounding, GLD gold ETF will likely face resistance at $397 as the bulls fail to attract enough buyers to retest the all-time high hit in late October. On the flip side, I expect $372 to remain a steady support zone despite the improved risk appetite.

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Broadcom stock price has been in a strong bull run this year as it became one of the top beneficiaries of the booming artificial intelligence (AI) industry. AVGO has soared by nearly 70% this year, bringing its market capitalization to over $1.84 trillion. This article explores whether it is a good stock to buy ahead of its earnings this week.

Broadcom stock is benefiting from the AI tailwinds 

The AVGO stock price has been in a strong uptrend this year as it emerged as one of the main beneficiaries of the AI industry.

The company reached a deal with OpenAI that will see it develop its custom chips as the latter expands its data centers beyond Nvidia. The deal positioned Broadcom as a crucial supplier alongside other companies like Nvidia and AMD, with analysts expecting its total value to be between $300 billion and $350 billion.

Broadcom also has a long relationship with Google, a company whose chips have helped to propel its market capitalization towards the $4 trillion level. 

Additionally, the company has a relationship with Apple, in which it sells advanced wireless components, especially 5G radio frequency parts.

All these relationships have helped boost Broadcom’s growth in the past few quarters. Its most recent results showed that the company’s revenue rose by 22% to $15 billion, continuing its trend of beating analysts’ estimates.

This growth was largely driven by its emerging AI business, which made over $5.2 billion in the third quarter. The management expects that its revenue will soar to $6.2 billion in the fourth quarter, a significant growth for a company that had a limited market share in the sector.

The next key catalyst for the AVGO stock price will be its earnings, which will come out on Thursday. Analysts expect the upcoming results to show that the company’s revenue rose by 24.2% in the fourth quarter to $17.46 billion, continuing a growth trajectory that has been going on for years.

If this is accurate, the company will bring its annual revenue to $63.42 billion, up by 23% from the same period last year. 

Most importantly, analysts expect that its revenue growth will accelerate in the next financial year, rising by 35.7% to over $86 billion. This is a remarkable growth metric for a company that has been around for decades.

Broadcom’s profitability is also expected to keep growing in the coming years. This average estimate is that its earnings per share (EPS) will come in at $1.87, up from $1.42x bringing its annual profit per share to $6.75. Its EPS will then surge to $9.33. Historically, Broadcom has a long track record of doing much better than estimates.

Valuation and potential risks remain 

The ongoing Broadcom stock price surge has some potential risks. One of the main risks is that it has a big relationship with OpenAI, A company that is not yet profitable. In a recent note, analysts at HSBC warned that the company will not make a profit by 2030 and that it will need to raise at least $207 billion to fund its commitment.

OpenAI also received a $100 billion commitment from Nvidia, a move that will see it keep buying its chips. It is unclear whether the company will need its Broadcom-made chips after this relationship.

Most importantly, the company has become highly valued, with its forward price-to-earnings ratio of 91 being much higher than other companies like Nvidia. As such, there are signs that it is priced to perfection, which is a major risk ahead of its earnings.

AVGO stock price technical analysis 

The daily timeframe chart shows that the Broadcom stock price has remained in a tight range as investors waited for the upcoming results. It has remained slightly above the 50-day and 100-day Exponential Moving Averages (EMA).

The stock is slightly below the upper side of the ascending channel shown in black. Also, it has started forming a bearish divergence pattern as the MACD and the Relative Strength Index (RSI) have moved downwards.

Therefore, the most likely scenario is where the stock pulls back ahead of earnings, potentially to $350. It will then rebound and possibly move above the upper side of the channel after publishing its numbers later this week.

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Oracle stock price has pulled back in the past few months, moving from the year-to-date high of $345 in September to $217 today. This crash has led to a big wipeout as its market cap has dropped from $934 billion to the current $620 billion. This ORCL stock forecast explores what to expect ahead of this week’s earnings.

Oracle stock has crashed as risks rise

The ORCL stock price has pulled back in the past few months, erasing most of the gains it made after reporting the last financial results in September.

That report was excellent as it showed that the company’s Remaining Performance Obligations (RPO) rose by 359% to $455 billion, one of the best figures in the tech industry.

Most of this RPO was because of its evolution from a big company in the database industry into a major provider of solutions in the artificial intelligence sector. 

This deal culminated in the $300 billion partnership with OpenAI in a five-year period. It also included some elements of the Project Stargate, which also involves Softbank.

Oracle stock price has crashed in the past few months as investors remain concerned about OpenAI’s dealmaking, which now involves partnerships worth over $1.3 trillion. In a recent report, HSBC warned that the company will not be profitable until 2030 and that it will need to raise over $200 billion in assets.

The results also showed that its revenue rose by 12% in the first quarter to $14.9 billion, with its cloud revenue soaring by 28% to $7’2 billion. In her statement, the CEO said:

“It was an astonishing quarter—and demand for Oracle Cloud Infrastructure continues to build. Over the next few months, we expect to sign up several additional multi-billion-dollar customers, and RPO is likely to exceed half a trillion dollars.”

Therefore, the upcoming results will provide more color on whether the company continued experiencing this growth in terms of RPOs.

The Oracle stock price has also come under pressure after a report by The Information cited internal officers who were concerned about its margins, claims that the company refuted.

Additionally, Oracle’s bond yields have jumped after the company borrowed heavily to finance its AI data center build up. It borrowed over $18 billion recently, bringing its total debt to over $100 billion. Indeed, its bond yields have jumped as concerns about its business remain.

Oracle earnings ahead 

The next important catalyst for the Oracle stock price will be its earnings, which will come out later this week.

Analysts expect the numbers to show that the revenue rose by 15% to $16.20 billion in the last quarter, continuing a prolonged period of double-digit revenue growth.

The guidance is expected to show that the company will make $16.87 billion in the next quarter, a 20% annual increase.

Oracle’s earnings per share are expected to keep rising, moving to $1.64 in the last quarter from $1.47 in the same period last year. Still, Oracle has missed three of the last four estimates, meaning that the trend may continue this quarter.

Another major headwind for the Oracle stock price is that the company is highly overvalued, with its forward price-to-earnings ratio rising to 44.43, up from the five-year average of 30.

ORCL stock price technical analysis 

The daily timeframe chart shows that the Oracle stock price has slumped in the past few months, moving from a high of $345 in September to the current $220.

This crash happened as the company’s risks continued growing, especially because of its partnership with OpenAI and as investors remained concerned about the AI bubble.

On the positive side, the stock has formed a morning star candlestick pattern, which is a common bullish reversal sign. This candle is made up of a small body and higher and lower shadows.

It has also remained above the 50-week and 100-week Exponential Moving Averages (EMA). Therefore, with so much pessimism being priced in, there is a likelihood that the stock will rebound after earnings, and possibly move to the resistance level at $250.

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